direct loans low interest loans student loans loans with bad credit mortgage loan mortgage rates direct loan car loan loan rates postage rates stafford loan mortgage interest rates auto financing second mortgages mortgage leads auto loan calculator government loans loans for bad credit student loan sntrust bank best credit cards loan amortization orchard bank secured credit cards business loan quick personal loans mortgage calculator currency exchange rates home equity loans us bank mortgage loans mortgage quity loans real estate loans unsecured personal loans interest only mortgage personal finance key bank emc mortgage regions bank no credit check loans instant loans personal loans american home mortgage loans online bad credit credit cards lasalle bank e loan pay day loans loan calculator mortgage calc bad credit mortgages home mortgages bank of new york car loan calculator bad credit personal loans mortgage companies exchange rates unsecured loans second mortgage loans poor credit american general finance mortgage company construction loans world bank sovereign bank home loans first national bank boat loans personal loan car loans finance military loans bad credit loans home mortgage bad credit auto loans consolidate loans reverse mortgage s commercial loans mortgage brokers college loans loan payment calculator cd rates mortgages cash loans consolidation loans pnc bank loan calculators bankruptcy loans small business loans loan officer first bank payday loan bank loans mortgage calculators bah rates student credit cards tcf bank construction loan
So far it’s just an view on Capitol Hill, but if passed a Senate bill would significantly impact reverse mortgage originations.
S. 2490 — the Reverse Mortgage Proceeds Protection Act — was introduced in December by Sen Claire McCaskill(D-MO). The bill would get to an issue we have repeatedly noted — the use of reverse mortgages to ultimately fund high-cost annuities with steep prepayment penalties.
The legislation specifically provides that “not later than 6 months after the term of enactment of the Reverse Mortgage Proceeds Protection Act, the Secretary shall, in consultation with other relevant Federal departments and agencies, promulgate regulations to help protect elderly homeowners from the marketing of financial and insurance products not in the interest of such homeowners, including the marketing or sale of
an annuity as a condition of obtaining any home equity conversion mortgage. In developing the regulations called for under that subsection, the Secretary shall consult with consumer advocates (including recognized experts in consumer protection), industry representatives, representatives of counseling organizations, and other interested parties.”
It’s crucial to say that we have had several loan officers who have said that they are specifically prohibited from selling annuities in connection with reverse mortgages. whether you are a loan officer with a similar standard please feel free to add your name to the list.
For background, see:
Should that Retiree Grab An Annuity?
Another Tale of Woe
How To Stop The Rip-Offs
Orginal post by Peter G. Miller
Share and Enjoy:
These icons link to social bookmarking sites where readers can share and discover new web pages.